Regarding solar energy, the daily average solar radiation varies from 4-7 kwh per sq. met. depending upon the location in the country. However, no specific assessment study has been done for hilly regions so far.
The cost of electricity per unit from solar energy is quite high as compared to conventional sources. As per the Central Electricity Regulatory Commission, the tariff for 2010-11 for Solar Photovoltaics Power Projects is Rs. 17.91 per unit and that for Solar thermal projects is Rs. 15.31 per unit. The cost of generation of electricity from wind power projects varies from Rs. 2.75 to Rs. 3.50 per unit depending upon site, capital cost, debt-equity ratio, and interest rate etc.
Government is promoting commercial grid connected wind power projects through private sector investment in wind potential states by providing fiscal incentives, loan from Indian Renewable Energy Development Agency (IREDA) and other financial institutions. Technical support including detailed wind resource assessment to identify further potential sites, is provided by the Centre for Wind Energy Technology (C-WET), Chennai. This apart, preferential tariff is being provided to increase wind energy investment in the potential States. Government has recently announced a generation based incentive (GBI) under which Rs. 0.50 per unit generated from wind power projects is provided to the projects which do not avail accelerated depreciation benefit.
The Government has recently announced Jawaharlal Nehru National Solar Mission which provides a policy framework to support promotion and development of grid connected solar power projects and also off-grid solar applications across the country including hilly regions.
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